View full sizeThe Associated PressBank of America Corp., the nation's largest bank, said Friday it would stop sales of foreclosed homes in all 50 states.

WASHINGTON — Bank of America Corp., the nation's largest bank, is
stopping sales of foreclosed homes in all 50 states as it reviews
potential flaws in foreclosure documents.

The company had previously said it would only stop such sales in the 23 states where foreclosures must be approved by a judge.

The
move comes amid evidence that mortgage company employees or their
lawyers signed documents in foreclosure cases without verifying the
information in them. On Wednesday, U.S. District Court Judge Garr King in Portland halted a Bank of America foreclosure on a Portland homeowner who represented herself in court, citing concerns about how the process was initiated.

"We will stop foreclosure sales until our
assessment has been satisfactorily completed," company spokesman Dan
Frahm said in a statement. "Our ongoing assessment shows the basis for
our past foreclosure decisions is accurate."